Profits at Fyffes go bananas

If not already acquainted perhaps the McCann's father-and-son team, top management bananas at Fyffes fruit importers, should …

If not already acquainted perhaps the McCann's father-and-son team, top management bananas at Fyffes fruit importers, should seek out Ken Bannister T.B.(Top Banana), founder of the International Banana Club. It could be a mutually fruitful relationship. The club, now on a membership crusade in what it terms "the year of the banana", is a networking framework for a bunch of yellow heads, offering members who make notable contributions to banana awareness exclusive rights to earn B.M's (banana merits) or, for the more ambitious MB's (Master of Bananistry), the ultimate accolade being a D.B. (Doctorate in Bananistry). Both degrees come with a tasteful medal and neck ribbon "which will make your friends green ( yellow, surely?) with envy".

Judging by this week's buoyant annual results from Fyffes the McCann's should automatically become honorary recipients of DB's, co-opted unto the club's board with all formalities waived. Last April chairman Neil McCann might not have been so feted by these wacky banana fetishes, scattering a few slippery investment skins in alerting shareholders that tough times lay ahead. Nine months later all has changed. This week the group surprised the market with pre-tax profits 11. 5 per cent higher at £54 million, a creditable achievement on a turnover only 2 per cent ahead at £1.5 billion. The profit improvement is attributable to a recovery in fruit prices in the second half of last year, particularly on the banana side, with a good performance from the Geest associate.

With the company now talking more positively about future earnings the market was forced into a quick re-evaluation, hoisting the Fyffes share price from 118p to its level of 134p yesterday. Earnings per share up 20 per cent enable shareholders to unzip a generous increase in total dividends. Enough surely to merit the McCanns a club membership card, bumper sticker, iron-on transfer and title of their choice; a RPVB perhaps.? (Regis Professorship in Banana Variables) Drop in on the club's web site at http://www.banana-club.com